Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the Gwen 2.0, that becomes highly successful in the market because of its economical price and excellent features. However, this leads to a significant decline in the sales of Prisly Inc.'s other cars. This scenario exemplifies _____.
A. segmentation
B. differentiation
C. cannibalization
D. personalization
Answer: C
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On November 1, Orpheum Company accepted a $11,300, 90-day, 12% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note?
A. Debit Note Receivable $11,300; credit Sales $11,300. B. Debit Sales $11,300; credit Accounts Receivable $11,300. C. Debit Note Receivable $11,300; credit Accounts Receivable $11,300. D. Debit Note Receivable $11,639; credit Accounts Receivable $11,300; credit Interest Revenue $339. E. Debit Note Receivable $11,300; credit Cash $11,300.
In the context of operations, the maximum amount of output an operation is capable of producing in a given time period is given by the ______.
A. firm’s managerial efficiency B. responsiveness of the firm’s suppliers C. firm’s capacity D. manufacturing lead time
Changes in accounting estimates are accounted for in current and future periods.
Answer the following statement true (T) or false (F)
Which of the following is true of design competition?
A. A scientific advance of existing technologies creates a significant breakthrough in performance or function. B. A new dominant design prevents a company from competitively selling its products or makes it difficult to do so. C. The patterns of innovation over time create sustainable competitive advantage. D. The older technology usually improves significantly in response to the competitive threat from the new technologies.